In the context of holistic progress of India since 19th century a great many characters have taken birth in this land who led campaigns to gain political freedom, spiritual upliftment and social justice. G.D. Birla’s name should surely figure amongst them.
Birth place—earlier history
G.D. Birla had greatly unfluenced the Indian progress in social, political and industrial fields. This embodiment of high capability, courage and indomitability was born in Pilani, a remote hamlet of Rajasthan. It is situated 233 kms north to Jaipur. Later, it became a part of Sikar district. Shekhawati culture was prevalent there.
It is said that before British Raj Jaipur was a state and then it was called Shekhawati. In the 15th century a prince was born there who was named Rao Sheikh. He was born as a result of the blessing of a Muslim saint whose name he got in ‘Shekh’ and Shekhawati which literally meant ‘of the Shekh line’. The area came to be known as ‘Shekhawati’. It was a large area which included a small part of present day Haryana as well.
According to the popular belief, in the 18th century Pilani was called ‘Dalelgarh’. Once it was attacked by an enemy and a local jat called Pilania fought bravely on the side of the defenders and laid down his life. The place was renamed as ‘Pilani’ in his honour.
Present day Birla business house
In the business world Birla House is like a giant bunyan tree. Shivnarain Birla was the one who pioneered the Birla venture. He gave up family comforts to try his luck in the outside world. The detailed account of this is given in the chapter dedicated to the forebears of G.D. Birla. The contribution of other members of the family is also remarkable but G.D. was its brightest star. The present generation of Birlas are running a business and industrial empire that was nurtured as a sapling with sweat, blood and toil by their predecessors. Today it is India’s giant business house. Following are the details of Birla enterprises :
Aditya Birla Group
Aditya Birla group is functioning as a multinational corporation. Its headquarter is in Mumbai and its business is spread over 20 countries namely U.S.A., Britain, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia, Australia, Canada, Thailand, Germany, Laos, Indonesia, Phillipines, Egypt etc. This 24 billion group has $ 23 billion liquidity. Fifty percent of the profits are earned from world over. It is India’s one of the best for efficiency and figures amongst 20 largest business houses of Asia according to Hevitt Economic Times and Wall Street Journal study.
On World Stage : Aditya Birla Group is involved in several kinds of industries. In metal business this group produces Aluminium and Zinc at most economic production cost. From the very beginning Hindalco has figured in world’s 500 top companies. It is one of three biggest aluminium companies of Asia and is world’s largest aluminium rolling concern. In copper smelting it is fourth largest in the world. This group is India’s second biggest cement producer and world’s 11th. The group leads in Viscos staple fibre. It is World’s third biggest Insulator manufacturer. Amongst top 15 B.P.O. companies this group figures. It is on top in fuel efficiency in fertilizer production.
In India
❑ In textile industry this group is on top.
❑ It is second in Viscos Filament Yarn production.
❑ The group is second in Chlore Alkali.
❑ It is one of the top five mobile companies.
❑ It is one of leading pack in Life Insurance and Assets Management business.
After diversification of the enterprises G.D. Birla took an effective step to unify the enterprises. Through a will he left most of the enterprises in the hands of his grandson Aditya Vikram Birla. He was the father of incumbent chairman Kumar Mangalam, the grandson of Basant Kumar Birla. Some other members of Birla family are running their own ventures.
Business management
Through various departments of business Aditya Birla Group also operates some allied or ancillary activities which include viscos staple fibre, non-ferrous metals, viscos filament yarn, cement, high quality textiles, carbon black, chemicals, retail market chains, sponge iron, fertilizers, insulators, financial services, telecom, B.P.O., information technology service etc. The group is divided into four major companies namely, Hindalco, Grasim, A.B. Uco and Ultra-Tech Cement.
Non-ferrous Metals : Hindalco operates all the activities related to non-ferrous products. It enjoys a big command over aluminium and copper production with plants in India. Hindalco’s franchise mine is in Australia. In 2007 the company took over Novel Co. of Canada in $ 6 billion and became the biggest player in aluminium production in the world.
Then Hindalco took over Orissa situated Alcum Alumina project to further strengthen its position. Hindalco manufactures Alumina chemicals, primary aluminium, rolled products, non-ferrous wheels, roofing sheets, wire rods, cast copper rods, wire cathodes etc.
Cement : The group produces cement under ‘Grasim’ and ‘Ultratech’ brand names. Both the companies are in business in India together. The latter company was taken over by the group from the Larsen & Tubro
Carbon Black : In carbon black production the group is 4th in the world ranking. The production is made in Egypt, Thailand, India and China. It supplies the product to tyre manufacturers world over.
Textile Business : A.B. (Aditya Birla) Group is on top in the world in the field of viscos staple fibre. The production is handled in India, Laos, Thailand, Malaysia and China. ‘Birla Cellulose’ is the brand name of its products. The group also produces acrylic fibre in Egypt and Thailand. Viscos filament yarn is produced in spinning mills situated in India and some south east Asian countries and sold as well.
In Canada the group is undertaking the works of pulp making and tree plantation which was strarted in Laos as well. The group produces quality textiles and it has a big market share in sales. In the chain of ancillary products Madura Garments is main manufacturer of textile fibre. The group has franchise licence for sale of Van Heusen and Allen Solie in India through its retail outlets in the major cities.
Telecom Services : ‘Idea Cellular’ is one of the main Telecom operators of India. Birla Group has 49.1 percent stock holding in it. It was started as a joint venture with AT&T. Then opening capital investment was launched in India. According to market share it is ranked third in India.
Other Ventures : Birla Group is amongst the top operators in other sectors as well. It is active in production of insulators, fertilizers, chemicals, sponge iron and in mining, financial services and retail trade.
Birla ventures started off as scattered efforts but it was G.D. Birla who modernised those efforts to get them in tune with the times and become a unified economic force. This book compiles all those efforts made by pioneers of Birla ventures which descending generations developed and carried forward. It is relevant to do so 20 years after the death of G.D. Birla for following reasons :
❑ G.D. Birla had entered into the family business at a raw age of 14 only after priliminary education. From his village Pilani he migrated to Mumbai as a boy in early teens.
❑ G.D. Birla is recognised as the founder of the Birla Business Empire as well as of Indian Chambers of Commerce and Industries (FICCI).
❑ He had entered the business world during the WWI when world economies were in upswing. He set up a cotton mill in Subzi Mandi.
❑ After setting up Keshoram Cotton Mill he stepped into jute trade at Kolkata to start diversification process.Then, Bengal was the world’s biggest producer of jute. He had to face resistence of European monopoly and exploitative British trade policies.
❑ In 1919 at the request of Gwalior Raja, a cotton mill was set up there with an investment of Rs. 50 lacs.
❑ In 1930 sugar and a paper mill was also stared for further diversification.
❑ In 1940 Hindustan Motors was set up to produce indigenous car.
❑ After independence G.D. Birla pulled up a long list of take overs of companies from European owners who wanted to leave India. This gave him stranglehold on tea trade and textile manufacture.
❑ He diversified further into the fields of cement, chemicals, rayon and steel tubes.
❑ Birla set up ‘Birla Institute of Technology and Sciences at Pilani, now one of the best institutions of the country.
❑ Sponsored the construction of temples, hospitals and orphanages and engaged in other works of charity and social services.
Basically he remained a family man. He had good relatives with leaders of the freedom struggle. It is imperative to know his background and forebears.
